Expedia Rewards: Analysis of new loyalty program 2011/03/29 at 7:11 pm
Expedia Rewards launched today, March 28, 2011. Loyalty Traveler analyzed the points earn and burn value for hotels and published program benefits.
Earn Expedia Rewards points
Expedia Rewards program base earn rate offers 1 point per USD $1 in Expedia travel purchases. Travel packages including a hotel stay with a total of two, three or four components earn 2 points/$1, 3 points/$1 and 4 points/$1, respectively.
Travel package components include airfare, hotel, car and activities.
- 1 point/$1 spent on hotels
- 1 point/$1 spent on flights
- 1 point/$1 spent on activities
- 2 points/$1 spent on hotel + flight travel package (or hotel + one other package component)
- 3 points/$1 spent on hotel + flight + car travel package (or hotel + any two other package components)
- 4 points/$1 spent on hotel + flight + car + activities travel package
Expedia Rewards Elite Plus
Expedia Rewards has an elite member program. Annual Expedia Elite Plus qualification requires 15 hotel nights or $10,000 in annual Expedia travel bookings. Some Expedia members received complimentary Elite Plus 2011 status that lasts through February 29, 2012. New Expedia Rewards members need to book and stay 15 nights or spend $10,000 in Expedia travel during 2011 to earn Elite Plus status that will expire Feb 28, 2013.
One of the strongest competitive advantages for Expedia Rewards compared to traditional frequent flyer and frequent guest loyalty programs is the ability for the Expedia account holder to earn points and credit with purchases for other travelers. All you home-based travel agents can book your family trip and earn Expedia Rewards for everybody else. In this sense, Expedia Rewards is akin to credit card program for travel purchase credits with a spend based elite member option, even if you don’t travel all that much.
“A single registered Expedia membership account will be given credit for all bookings made to that account, regardless of who completes the travel.” – Expedia Elite Plus terms and conditions.
If I book 15 hotel room nights in 2011 through my Expedia Rewards account, then I will earn Expedia Elite Plus status through February 28, 2013 regardless of the traveler names for the booked hotel rooms. I can’t earn points with traditional hotel loyalty programs in my personal hotel member account without being one of the guests staying at the hotel.
Elite Plus on Airline purchases: $10,000 in airline tickets and total travel purchases is a high threshold for earning Elite Plus. The threshold is much lower for hotel bookings at 15 nights. Basically the profit margin on airline tickets is very low for Expedia. Most of Expedia’s profits come from hotel bookings according to industry data I have read.
Expedia Elite Plus Benefits and VIP Access Hotels $30 Promotion
Elite Plus members can receive free upgrades, late checkout and other perks with Expedia “VIP Access” designated hotels.
Expedia VIP Access Hotels earn 2 points/$1.
Expedia Rewards also offers a $30 coupon on stays of 3-nights or longer at Expedia VIP Access hotels through December 31, 2011 when booked by March 31, 2011. (Loyalty Traveler is disappointed to see such a short booking window.)
Elite Plus members also have a Hotel Price Guarantee. The terms indicate you can get a lower room rate for stand-alone hotel bookings if found on a US based website anytime from time of booking on Expedia until day before arrival.